Vow (VOW) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw record high revenue in Maritime Solutions and continued growth in Aftersales, but Industrial Solutions faced significant challenges due to underestimated costs in major projects, resulting in revenue reversals and negative segment results.

• Liquidity improved significantly through strong inflows from milestone payments and trade receivables, with overdue vendor payments settled and covenant waivers obtained.

• A profit improvement program was launched to enhance cost control and operational efficiency, alongside a strategic review focusing on reinforcing Maritime and Aftersales and redefining Industrial Solutions.

• Order backlog remains robust at NOK 1,449 million, with NOK 134 million in options, providing strong future visibility.

• Delivery of the large CHE reactor to Follum triggered milestone payments and further liquidity improvement in Q4 2025.

Financial highlights

• Q3 2025 revenue was NOK 214.3 million, down NOK 53.1 million year-over-year, mainly due to Industrial Solutions' negative revenue of NOK 5.7 million from cost reassessment.

• Maritime Solutions achieved all-time high revenue of NOK 165.9 million, up NOK 73 million year-over-year.

• Aftersales revenue grew 3% year-over-year to NOK 54.2 million, with margin improvement to 17.9%.

• Adjusted EBITDA for Q3 2025 was negative NOK 28.5 million, with a margin of -13.3%, mainly due to Industrial Solutions.

• Result before tax for Q3 2025 was negative NOK 57.1 million, compared to negative NOK 20.7 million last year.

Outlook and guidance

• Liquidity is expected to improve further in Q4 2025 due to milestone payments and disciplined cost management.

• Strategy review to be concluded by end of Q4 2025, with focus on cost control, operational efficiency, and selective project pursuit in Industrial Solutions.

• Positive market outlook in Maritime Solutions and Aftersales, with healthy margins expected as legacy contracts decrease and a growing installed base.

• Industrial Solutions faces slower market progress but maintains solid interest in circular solutions, focusing on risk reduction and selective project advancement.